Question: Question # 2 Please answer all 5 parts Given the following information, calculate the expected value for Firm C's EPS. Data for Firms A and

Question # 2 Please answer all 5 parts

  1. Given the following information, calculate the expected value for Firm C's EPS. Data for Firms A and B are as follows: E(EPSA) = $5.10, and A = $3.59; E(EPSB) = $4.20, and B = $2.97. Do not round intermediate calculations. Round your answer to the nearest cent.
    Probability
    0.1 0.2 0.4 0.2 0.1
    Firm A: EPSA ($1.66) $1.80 $5.10 $8.40 $11.86
    Firm B: EPSB (1.20) 1.38 4.20 7.02 9.60
    Firm C: EPSC (2.51) 1.35 5.10 8.85 12.71
    E(EPSC): $ _________
  2. You are given that c = $4.10. Discuss the relative riskiness of the three firms' earnings using their respective coefficients of variation. Do not round intermediate calculations. Round your answers to two decimal places.
    CV
    A ???
    B ???
    C ???
    The most risky firm is Firm A, Firm B, or Firm C,.
  3. Please dont forget to answer above question.

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